1. Question: The term GAAP stands for:
2. Question: Financial accounting serves which primary function(s)?
– Measures business
– Communicates business activities to interested
– Makes business decisions on behalf
...
1. Question: The term GAAP stands for:
2. Question: Financial accounting serves which primary function(s)?
– Measures business
– Communicates business activities to interested
– Makes business decisions on behalf of interested
3. Question: Which of the following represents an obligation of the company?
4. Question: Which body has the primary responsibility for the establishment of Generally Accepted Accounting Principles?
5. Question: At the end of the current period, Maltese, Inc. reports the following amounts: Assets = $50,300; Liabilities = $32,100; Dividends = $4,100; Revenues = $21,600; Expenses = $15,900.
Calculate net income and stockholders’ equity at the end of the period.
6. Question: During its first five years of operations, Della Manufacturing reports net income and pays dividends as follows.
Year Net Income Dividends
1 $2,200 $1,500
2 2,600 800
3 3,500 2,100
4 5,000 1,800
5 8,300 3,100
Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1.
7. Question: Consider the following account balances of the Shattuck Law Firm at the end of the year:
Accounts Payable $ 4,400
Salaries Expense 12,800
Cash 1,700
Common Stock 2,400
Service Revenue 8,300
Supplies 4,300
Retained Earnings 1,100
Utilities Expense 5,000
How many of these accounts would appear in Shattuck’s year-end balance sheet?
8. Question: Which of the following statements is NOT correct about the financial statements?
9. Question: Which of the following is not a major section in the statement of cash flows?
10. Question: Which of the following best describes the primary role of auditors in financial reporting?
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